BP issued a statement today to say that it is "not aware of any reason" that justifies yesterday's 16 percent plunge in its stock.
There are actually $37B reasons why BP's stock has lost $82B in value since the Gulf Oil disaster, sinking to a 13-year low. That 37B is the estimate that Credit Suisse gives for the oil giant’s potential liability.
BP inept PR team has a new recruit as Ogilvy PR Worldwide has answered the call to duty. The London Times reports that Josh Bolten, chief of staff to President George Bush II, has aslo joined the PR team.
Bolten is a member of BP’s international advisory board. Bolten is expected to work Capitol Hill for BP, especially now that 44 Senators have signed Sens. Chuck Schumer and Roy Wyden’s letter demanding that BP not pay dividends until it knows the full tab of its clean-up cost. Bolten’s clout on Capitol Hill is a tad suspect.
The House Judiciary Committee voted to hold Bolten in contempt for his failing to cooperate in its investigation of the Bush Administration’s firing of U.S. Attorneys. He’ll fit right in with BP’s crackerjack PR team. And so it goes.
BP shouldn’t suspend its dividend. The annual $10B payout is a key revenue source for pensioners both here and in the U.S. The dividend represents about 14 percent of combined the payout of the top 100 companies listed on the London exchange. BP should instead suspend its PR/ad campaign.
President Obama railed against the $50M that BP is spending for ads, while it is nickel and diming residents of the Gulf Coast. The $50M is chump change for BP, but worse the ads simply made viewers angry.
In the ads, BP takes credit for its herculean effort to stop the spill. Meanwhile, spill video cam, which is an Internet “hit,” reminds the world that BP’s best efforts are so far all for naught. Oil is still gushing into the Gulf. BP should pull the plug on ads/PR at least until the hole is plugged. Also, please keep CEO Tony Hayward away from the video cameras. Talk about being out-of-touch.
Go dark, BP. Concentrate on the work at hand, which is fixing your mess. Corporate reputation is the least of your worries at this point. There will be plenty of time for reputation rehab under new management and ownership.
